Cadbury Schweppes worksheet from The Times 100 website: www.tt100.

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Cadbury Schweppes
Responding to social responsibility and ethics
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Questions
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. What is meant by business ethics? Give one example of how Cadbury Schweppes operates in an ethical way? How is the example you outlined in your answer to 2 also good business practice? Do ethical practices and good business practices always coincide? How is the culture of Cadbury Schweppes associated with ethical practice? Give two examples of how a company may reject the route that leads to short term profits so as to operate in an ethical way. Why might adopting ethical practices also be considered to be good business practice? Identify two stakeholder groupings in a company that may have different concepts of social responsibility. Can their different views be reconciled? What sort of principles should be applied in the ethical marketing of chocolate? The term transparency relates to the ease with which an outsider can see in to find out what a company is doing and how it is behaving. Give examples of ways in which Cadbury Schweppes can and does operate in a transparent way.

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Cadbury Schweppes worksheet from The Times 100 website: www.tt100.biz

Cadbury Schweppes
Responding to social responsibilities and ethics
Answers
1. 2. 3. 4. Business ethics are sets of moral principles that a business applies so as to be able to do the right thing. One way in which Cadbury Schweppes operates in an ethical way is by treating the environment with respect, for example by treating waste and improving energy efficiency. Improving energy efficiency also makes business sense, because this cuts down operating costs for the business. It is possible to argue that there is a tension between operating as a business and as an ethical business. It could be said that the business of business is business, i.e. to make a profit. However, this is a very short term view. The business that concentrates on short term profits will alienate stakeholders, e.g. environmental stakeholders, employees, suppliers etc. In contrast, an ethical approach takes a long term view of managing relationships with stakeholders and this will actually create long term growth and higher profits for the business. Since being founded by the Quaker Cadbury family the company has always been associated with justice, equality and social reform. The culture of a business consists of the typical behaviours and values of an organisation and its people. Cadbury has always looked after its people and the wider community so that operating in an ethical way today is part of a long tradition. i. ii. 7. a company could pay the lowest price possible for its supplies in order to maximise profits or it can pay a fair price a company could cut the wages of its employees to boost profits or it can provide a decent, benchmarked rate of pay that shows how much it values the contribution of its employees.

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Behaving ethically is good business sense as well as good citizenship. A business that acts in an unethical way in the short period in order to raise profits is usually found out and gains a lot of unfavourable media publicity. This leads to a decline in custom, revenues and profits. In contrast, a business that behaves in an ethical way builds up a store of goodwill for the future. A case could be made that shareholders will have a different view of social responsibility to employees in a business. The employees seek better pay and conditions, and opportunities for personal development and a career ladder. The shareholders seek increases in share prices and good levels of dividend. However, the two are really interlinked. A company that provides good working conditions and values its employees will benefit from committed, hard working employees who enhance long term profits. The ethical marketing of chocolate involves not only finding out what people like, but what is good for them. It involves being honest about the ingredients included, for example through unambiguous clear packaging and labelling. It involves not encouraging consumers to consume more than they need or what is good for them (particularly in the case of young children and those with medical problems).

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Transparency involves making a company open to public scrutiny for example by publishing environmental and ethical policies on the Internet so that everyone can read them. It involves creating newsletters for employees and clear reports for shareholders. It involves carrying out audits of practices such as fair trading and environmental management. The transparent company is not frightened of scrutiny because its overriding aim is to operate in an ethical and business like way.

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